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Information Your Bookkeeper Needs from You

Information Your Bookkeeper Needs from You

The pandemic has changed many of the types of business success stories. For example, one local restaurant saw their business traffic fall to nearly nothing in the face of pandemic shutdowns. Instead of closing the business, the restaurant switched to carryout and delivery of food and liquor, and thrived. Your business has managed to thrive as well, and you may be wondering what your next step should be. You need to think about hiring a bookkeeper.

Small business owners are often worried about a lot of things, but hiring a bookkeeper isn’t typically one of them. Starting a business means you are trying to decide when to open a location, hire employees, and apply for business loans to expand. The last thing many business owners worry about is a bookkeeper, but it should be higher up on your list. Small business owners usually take their time hiring a bookkeeper because so many other details need their attention.

Business owners focus more on getting and maintaining customers, marketing, product placement, employee retention, and making their business as appealing as possible. Once a business owner hires a bookkeeper, nearly 90 percent of them say they will never go back to life before a bookkeeper. Why would they, when a bookkeeper saves them both time and money?

If you are new to having a bookkeeper on your staff, or you are thinking it is time for you to hire a bookkeeper for your business, there are items you will need to begin saving for your bookkeeper and information your bookkeeper needs to make sure your business continues to prosper. Here are the items your bookkeeper will need to do their job.

Protea Financial Save Your Receipts

Save Your Receipts

Collecting receipts from your business means that you need to find a place for all of that paper you’ve stuffed in your wallet or in an envelope sitting on your desk. One of the most important items your bookkeeper needs are your receipts. You may have never saved your receipts before, especially if your business is small and growing, but now is the time. Bookkeepers are all about keeping track of your money that comes in and goes out of your business, so receipts are extremely important.

Your bookkeeper will need all of your business receipts. If you’re questioning why receipts are important, here is an explanation of their importance to your money and your business financial records.

First, if you keep your receipts from business expenses, both your bookkeeper and your accountant can use them to justify your tax returns at the state and local level. One of the reasons business owners intensely hate doing their taxes is because of the paperwork involved. With receipts, you’re able to justify your expenses for your business taxes. For example, if you take clients to business lunches or dinners, you can deduct that expense from your taxes. If you eat a lot of lunches and dinners out during the year, the money adds up. It will be worth it for your business to keep track of where the money went. If you get money back on your taxes, you may be able to buy new equipment, find a larger office space, or hire new employees.

Also, while auditing of business taxes is more rare than audits for personal taxes, one out of 100 business are audited yearly. The average time businesses spend on an audit is from three to six months—if you have your paperwork in order. If you aren’t organized, a business audit can take up to three years or longer to complete. No one wants to go through an audit, but if your business is audited, all of those receipts you saved will be used by your accountant to justify your business expenses.

Another really important reason you’ll want to save your receipts to give to your bookkeeper is to reconcile your business accounts. Bookkeepers excel at reconciling your business accounts, so that when you look at your banking information, your accounts will be current and perfectly balanced. This is a giant time suck for business owners, so handing over receipts means a lot less time you waste on your bank account balances.


Your Bills and Invoices

Businesses get bills and invoices in the mail daily, and you may be tempted to toss those bills in a tray and forget about them for a few days. Taking the time to input bills and invoices into your business records can be time consuming. However, instead of putting those bills and invoices in a tray, put them in an envelope or accordion folder to give to your bookkeeper. First, if you pay your bills, and put them in a folder, you will be able to manage your business money more effectively. Second, if your bookkeeper keeps track of your bills and invoices, when something doesn’t seem right, and you know you paid an invoice, even though the business says you didn’t, you can prove it thanks to your bookkeeper.

Keeping track of your bills and invoices means that you have a paper trail for taxes, because invoices and bills are part of a business’ tax liability. Your bookkeeper will also be able to balance your accounts so you always know where your money is going.  The larger your business grows, the more important it will be to keep track of all of your income and outgoing expenses as part of your business assets and liabilities. If you are looking to find additional financing, your prospective lender needs an accurate record of all of these expenses. It’s time to get all of your money in order.



Deposit Slips, Canceled Checks, and Banking Information

Some business owners use electronic checks or online banking, and never write paper checks, while others use a combination of paper and electronic checks. No matter what kind of checks you use, you need to give your bookkeeper your banking information for them to do their job properly. Your bookkeeper will use the information to keep track of the flow of money coming into and going out of your business accounts.

Business owners are increasingly concerned with business fraud, and they need to be. Fraud affects thousands of small businesses each year, and the average cost of fraud for small business averages in the hundreds of thousands of dollars. If you are concerned about giving your bookkeeper all of your banking information, there are ways you can limit their access for your security. Be sure and ask your bank or credit union how you can limit your bookkeeper’s account access to protect yourself and your business.



Information About Your Business

Your bookkeeper needs information about the type of business you’re running in order to keep your records properly. You need to give them information about what your business does, where the income and liabilities are in your business, and how many employees you have. You’ll want to share your mission and vision, as well as the goals and objectives for your business moving forward. The more information you can give your bookkeeper about your business, the better your bookkeeper can help you keep your business moving forward.

Protea Financial Payroll Information

Payroll Information

One of the largest expenses any business has is payroll, especially now. The Covid-19 pandemic and the Great Resignation have left business owners with huge payroll expenses. In fact, payroll can account for between 15 and 30 percent of your business’ gross revenue.

Your bookkeeper needs access to payroll information in order to keep your business taxes current and ensure that employee withholding is correct. If you are behind in your payroll taxes, you can face state and federal penalties. Your bookkeeper can ensure you are paying the correct amounts in payroll taxes to the government.


Tax Documents

You will want to give your bookkeeper access to all of your business tax records dating back to when your business opened. If you’ve been in business for a long time, you can give your bookkeeper access to your tax documents from the last seven years. If you allow your bookkeeper access to your tax documents, they will be able to keep track of your tax debts and payments at the federal and state level. This will help your accountant track your tax expenditures and give you forecasts for your tax liabilities moving forward. Businesses who are able to plan for tax expenditures won’t be surprised with a huge tax liability in the new year.


Contact Protea Financial for Help with Your Business Bookkeeping

While you’re pondering what your next move in business should be, you need to consider hiring a bookkeeper. While hiring someone to help you keep track of your business income and expenses will cost you more money upfront, it’s worth it. Hiring a bookkeeper is essential for any small business on the move. Your bookkeeper will save you both time and money in the long run. No matter whether saving time or saving money is more important, a bookkeeper can help you accomplish both, not to mention saving you hours of worry and stress. If you need help finding the perfect bookkeeper for your business, we can help. Protea Financial has bookkeepers that can help you get your business books in order, no matter what your business is. Contact Protea Financial today.

Let us Help You Gather the Information Your Bookkeeper Needs Now!

Having the information your bookkeeper need at the ready makes hiring a bookkeeper easier and faster. Let us help you get your information together today!

7 Tasks You Can Ask Your Bookkeeper to Do for You

7 Tasks You Can Ask Your Bookkeeper to Do for You

You’ve got a great bookkeeper. They are organized, detail-oriented and understand the basic concepts of accounting. They keep your books in order, perform analyses and balances, and can handle even the most complex of tasks. They are the perfect business partner, and they are great at what they do. However, are they doing everything they can to help your business? Yes, your bookkeepers are great at recording transactions, reconciling accounts, and performing other financial tasks. But that is only part of the job they could be performing. If you want your bookkeeper to become the invaluable partner you need and could not live without, you need to give them the chance to shine. Here are seven tasks you can ask your bookkeeper to do for you to help your business thrive and grow.

Create a Financial Statement

If your business generates revenue, you need to track that revenue and create a financial statement. Every quarter, your bookkeeper will add up your sales and subtract expenses to calculate your net profit or loss. But what do you track? If you are not tracking your revenue, your bookkeeper will have a very difficult time calculating your profit. And if you are not tracking your expenses, your bookkeeper will have a very difficult time calculating your loss. Both of these figures will be important to you and they say everything about the overall health of your business. Thankfully, your bookkeeper can help. By creating a financial statement, your bookkeeper can help you better understand your business and measure its success.

Manage Payroll

Your bookkeeper can help calculate your payroll and in some cases, even manage employee benefits if you have employees. Depending on your industry, your payroll requirements can vary widely. If you own a restaurant, for example, payroll taxes will be high. If you own and run an insurance company, you may have a complex set of requirements. Whatever the case, your bookkeeper can help you manage payroll. During the process, they will help your business reduce costs and have a better idea of how much revenue each employee brings in. They also use this to help track that your business is making enough money to cover the costs of the employees you currently have.

Set Up Automated Systems

Your bookkeeper will be able to set up automation systems for some operations, if you perform a specific type of business. The system could help you track inventory and track customer orders. If you have a bar, for example, you will want to track how much liquor you order and how much you sell. In retail stores, you will want to track how many items the customers buy and whether they pay with cash or credit card. You will also want to track how long it takes them to pay the bill. That way, at a moment’s notice, you can tell what your inventory levels are and if you have the money to buy more when the supply dictates that type of purchase. Automation systems are useful for tracking inventory and managing customers.

Protea Financial Bookkeeper tasks

Track Your Performance

One task your bookkeeper can take on is tracking your performance. They will do this through regularly looking over the numbers of incoming revenue, outgoing expenses, and watching or knowing industry trends. Many bookkeepers have insight of when business will pick up based on the performance in prior years. The more tracking you have your bookkeeper do, the more insight you can gain into how to position your business for the best returns. You can ask your bookkeeper for advice on future decisions based on past performance, giving you an edge in your industry, too.

Keep Track of Your Inventory

Your bookkeeper will be able to keep track of your inventory if your business regularly keeps inventory records. Inventory records help your financial professionals keep track of your profits and losses. They let you know how much money you have in the bank and how much money you owe suppliers. If you don’t keep track of inventory, your bookkeeper will have a difficult time calculating your profits and losses and helping you manage your finances.

For example, if you own a winery, you need to track how many bottles you create, how many are sold, and how many you plan to allow to age for a deeper flavor. Knowing what type of inventory you have on hand also allows you to price your inventory properly. Asking your bookkeeper for insight as to which products have sold best and what their price points were can help you adjust your prices if sales seem stagnant or slow during certain periods of the year.

Dig Into Your Company’s Finances

Your bookkeeper will be able to help you dig into your company’s finances if you regularly perform financial analyses. Analyses let your bookkeeper figure out how much you should be earning and how much you can spend. This can be a tricky, complicated task. If you don’t perform financial analyses regularly, you could have a difficult time making sure you have enough money to cover your expenses and have a buffer for unexpected losses. Your bookkeeper can help you perform financial analyses to figure out how much money you need in the bank, how much income you should place into various investments, and how much you can spend when you need inventory or upgraded equipment.

Protea Financial Tax Documents Your Bookkeeper Can Help With

Help Get Tax Documents Ready for Your Accountants

In the course of helping you manage your finances, your bookkeeper will help you get tax documents ready for your accountants. Your accountant will need access to the documents you need for taxes each year. They will also need access to or copies of the documents you need to file your taxes. Your bookkeeper will be able to help you get all the documents you need ready for your accountant. You will also be able to relax while they do it. Accountants and bookkeepers regularly work together. They know what the other will need, ask for, or information that will help make their jobs easier. Let your bookkeeper and your accountant work together so that at tax time, you can remain stress-free while they work together to figure out all the details.

Turn to Protea Financial for Help Learning What a Bookkeeper Can Do

Your bookkeeper can help you become more efficient and effective in running your business. Whether you want to track inventory or manage payroll, your bookkeeper can help. They will also be able to help you with tracking your performance and getting your business ready for taxes each year. Bookkeepers can also help you dig into your company’s finances and help you make sound financial decisions. With a well-prepared bookkeeper, your business will be more efficient. To find a bookkeeper your business can depend on for these tasks and more, contact Protea Financial today. We are here to help!

Find the Perfect Bookkeeping Partner at Protea

Take the time to find a bookkeeper that you can trust to help with all the business tasks possible. You need to focus on running your business. Leave the numbers to your bookkeeper!